The official EU line ahead of the White House talks: “There are no offers. This is a discussion, it is a dialogue and it is an opportunity to talk.” This is wise given that current economic as well as domestic political realities embolden Trump’s trade strategy and don’t incentivize him to offer the EU a mutually beneficial deal.

The timing might be ripe, however, for a truce and a quick win in the near future, with the potential of a forward-looking agenda in transatlantic trade relations. Trump has increasingly received pushback from fellow Republicans, the private sector as well as the U.S. workforce for his plan to impose tariffs on cars and car parts. A solution that avoids a spillover of the trade war into the auto sector would not only be beneficial for U.S. relations with other countries, but also appease critical voices at the national level—a win-win for Trump.

Just days before the meeting with the European delegation, Trump threatened to slap tariffs on all Chinese exports to the United States. By threatening to escalate trade relations with one of the United States’ two largest trading partners (the other one being the EU), Trump might be trying to intimidate European negotiators and may have given us some indication of what negotiations with the EU will look like.

What conditions embolden Trump’s strategy?

Internationally, Trump’s approach to trade does not seem to scare global investors too much. Financial markets have remained relatively unchanged despite the president’s constant threats of tariff increases and the potential of these tariffs to disrupt markets and global supply chains.

On the European side, the very makeup of the EU as well as rising national tensions among key member states influence the United States’ negotiating position. EU member states have given the European Commission the mandate to negotiate trade deals on behalf of the bloc. While negotiating en bloc puts European member states on an equal footing with the United States, it also means the Commission has to represent the interests and national priorities of 28 member states, who would all be differently affected by potential tariffs.

Any union is only strong if it speaks with one voice, but France and Germany don’t see eye to eye on what the European delegation should offer Trump on Wednesday. France has denounced Germany’s appeal for more flexibility in the negotiations and a potential deal with the United States.

On the U.S. side, there are several domestic economic and political factors that strengthen the president’s hand. These include:

• Retaliatory tariffs from China, the EU, and others are often gradually implemented and take time to bite;

Potential for a truce?

While the European delegation does not plan to make any concrete offers to Trump, the U.S. president’s tweet ahead of the meeting—“Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs”—reads very differently from the official EU line.

A bilateral deal between the EU and the United States to cut industrial tariffs, or a plurilateral agreement to rid the world of car tariffs, are just two of the many ideas circulating among experts. Negotiations or any offer by the EU are only an option if the U.S. administration agrees to refrain from issuing car tariffs and abolishes (or at least pauses) its recently issued tariffs on European steel and aluminum. In return, the EU could offer to unilaterally eliminate tariffs on auto imports, which have been a sticking point for Trump. This scenario would calm the transatlantic relationship, allow Trump to declare a win, and pave the way for future dialogue to deepen transatlantic economic ties.

A truce should be negotiated with the understanding that negotiations on more substantial negotiations, including extensive regulatory cooperation and the elimination of certain tariff and non-tariff barriers to trade, will start on a technical level in the upcoming weeks and months. This would potentially breathe fresh air into the Transatlantic Economic Council, a forum that was established in 2007 to help guide and deepen transatlantic economic cooperation.

While expectations from Wednesday’s meeting are low, the stakes are high. No one wins in a trade war.

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